Alan, Whose Wife Died in 2016, Filed a Joint Tax

question 84

Multiple Choice

Alan, whose wife died in 2016, filed a joint tax return for 2016.He did not remarry and continues to maintain his home in which his four dependent children live.In the preparation of his tax return for 2018, Alan should file as:

• A)Single
• B)Qualifying widow(er)
• C)Head of household
• D)Married, filing separately
• E)None of the above

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Definitions:

Discount Rate

The rate of interest applied in DCF evaluations to estimate the current worth of future cash inflows.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess profitability.

Sales Revenues

The total amount of money generated from sales of goods or services before any expenses are subtracted.

Operating Expenses

Costs related to the day-to-day functioning of a business, excluding the cost of goods sold.